Rent review and lease regear and renewal.
Occupied by logistics operator, UPS.
Lease expiry approached – contacted tenant with a view to lease renewal.
Negotiated new lease terms on behalf of landlord, achieving 51% increase in rent.
Lease Renewal Advice - Fairgate International Limited
22,524
sq ft
Unit D, Avis Way, Newhaven.
51
%
increase in rent.
Challenge
Vail Williams’ lease advisory team was appointed by landlord, Fairgate International Limited, to provide advice ahead of a lease expiry at their 22,524 sq ft industrial unit in Newhaven, occupied by UPS.
The landlord was keen to seek a new lease with the tenant for a further ten years at an appropriate rent and was unsure of the tenant’s intentions with an approaching lease expiry.
How we helped
- Inspected the premises, undertook an in-depth survey and researched wider industrial market locally.
- Advised on estimated rental values (ERVs) and likely negotiable renewal terms to agree a strategy to approach the tenant with.
- Negotiated with the tenant until mutual agreement was reached.
“Vail Williams’ knowledge of the industrial market and advice on structuring a renewal with an appropriate rent was of paramount importance to us in protecting the value of this asset. Their negotiation skills were integral to putting the deal together and delivering a strong outcome.”
Jonathan Martyr, Asset Manager to Fairgate International Limited.
Result
- Successfully negotiated a significant rent increase of £63,000 a year for the landlord.
- Moved the passing rent on from £123,000 pa, to £186,000 as a result of growth in the industrial market.
- UPS renewed their lease for a further 10 years, with five-year break at £8.25 psf.
- Enabled our client to benefit from a significant increase in investment return, whilst retaining a high-quality tenant.
“Thanks to Hannah’s expertise, we achieved security of tenure on good terms, with a high-quality tenant.”
Jonathan Martyr, Asset Manager to Fairgate International Limited.
Get in touch
If you think you may need similar support to that described here, or you would simply want to have an informal chat with a member of our team to discuss your property needs, get in touch.
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